The European Union has announced an additional investment of €11.5 billion in South Africa to support the country’s energy transition and accelerate the decarbonization of its economy, President Cyril Ramaphosa confirmed on Thursday after meeting European Commission President Ursula von der Leyen.
President Ramaphosa said the new financial commitment from the EU would strengthen bilateral cooperation in the green economy, create jobs, and reinforce supply chains across Africa.
“This investment will help build the economy of the future in today’s South Africa,” Ramaphosa stated, highlighting that the program encompasses critical minerals, green hydrogen, electric batteries, renewable energy, and vaccine production, among other sectors.
The initiative follows the South Africa–EU summit held in Cape Town in March, where both sides agreed to advance clean trade and sustainable investment. It forms part of the Just Energy Transition Investment Plan (JET-IP), a global partnership also supported by Germany, France, the United Kingdom, and the United States.
According to the report, the EU remains South Africa’s largest foreign investor, accounting for 41% of foreign direct investment in the country. More than 2,000 European companies currently operate in South Africa, collectively supporting around half a million jobs.
President Ramaphosa also expressed appreciation for Brussels’ backing of South Africa’s upcoming presidency of the G20, which will prioritize themes of solidarity, sustainability, and the reform of global governance institutions.
European Commission President Ursula von der Leyen is expected to visit Johannesburg next month to attend the G20 leaders’ summit, where the partnership is set to be further strengthened.
The €11.5 billion investment underscores South Africa’s growing role in the global green transition and highlights Europe’s commitment to fostering sustainable development and climate resilience across the African continent.
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